Disposal of assets is a process involves removing assets from accounting records. Such process will be triggered if the traces of assets are to be removed from the balance sheet completely. When disposing an asset, transaction involved may need to be recorded as gain or loss in the reporting period.
You can easily perform such process in TreezSoft cloud accounting software by following simple steps as below:
Disposal:
- Create Sales Invoice
To create sales invoice go to Sales Invoice (under the customer module).
Go > Customer > Sales Invoice.
To create New Invoice click on “New Sales Invoice”.
Create sales invoice:
- Debit debtor
- Credit asset account
- Create Journal Entry
To record disposal of an asset go to Journal Entry (under the General Module).
Go > General Entry > Journal Entry.
Click “New Journal Entry” to process.
Make Journal Entry:
- Debit all accumulated depreciation
- Debit balance to expenses/loss
- Credit remaining asset amount
You can continue reading on similar topics in TreezSoft blogs through these links:
TreezSoft is a cloud accounting software for Small and Medium-sized Enterprises (SMEs). It allows you to access your financial information anytime, anywhere. It also allows you to have unlimited users for FREE for your account in TreezSoft. Our aim is to help reduce our clients' time spent on accounting mainly by using our automated processes and integration to help increase their company effeciency at a minimum costs. SMEs can use TreezSoft to keep track their expenses, accounts, daily operation e.g. Point of Sales (namely QPOS) system and etc.
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